In FY23, the Indian auto sector produced a staggering 2.7 crore vehicles across segments and kinds, valued at over USD 108 billion (Rs 8.7 lakh crore), with the passenger vehicle segment representing 57% of the total value at Rs 5 lakh crore, according to research released on Wednesday.
The commercial vehicle segment, which includes small 4-wheel carriers with less than 2-tonne capacity to large tractor trailers and specialty vehicles like tippers, made up 10% of the total 2.7 lakh crore vehicles produced in the previous fiscal year, or 10 lakh vehicles, according to a report by management consulting services firm Primus Partners. This segment’s value was Rs. 1.7 lakh crore.
The CV category made up 4% of the total volume and 19% of the total value, according to the statement.
With 20 million two-wheelers leaving Chinese factories each year, accounting for 77% of the global volume share, Primus Partners claims that China and India are closely comparable in terms of two-wheeler output.
1.8 lakh crore, or 21% of the market’s value, was accounted for by the overall segment.
According to the report, 1.9 crore people were engaged by the sector during that time.
According to the survey, the mid-size and full-size SUV sub-segments in the passenger vehicle segment accounted for more than half of the value.
According to the report, luxury sector vehicles generated Rs 63,000 crore, or 13% of the segment’s value, while the compact sub-segment also played a significant role, creating 25% of the segment’s value.
It did, however, point out that consumers do not favour the less expensive sedans and “Mini” automobiles, and their worth is poor.
But it went on to say that the two- and three-wheeler segments have seen a significant amount of electrification in India.
The survey also said that despite the fact that India’s EV industry lags behind world leaders like China, the US, and the EU, large investments have been made there, which clearly suggests that India is set to see a big expansion in its EV segment over the course of the next few years.
According to the survey, a number of variables are changing the automotive industry in India, putting it on the verge of unprecedented transformations.
The transition of the Indian automotive sector is being fueled by elements like electrification and alternative green power, a rise in the usage of electronic components, autonomous changes (like self-driven cars), and shared vehicle rentals and cab services, among others, according to the research.
“Our in-depth investigation into the value of the automotive sector is yielding a wealth of information, such as the Indian market’s eschewal of lower-priced goods in favour of higher-priced, feature-rich vehicles that offer greater value. Anurag Singh, Managing Director of Primus Partners, asserted that his company believes value growth is outpacing volume growth.
